[ Technology ]
AUTOMATION+INTEGRATION
= MORE EFFICIENT UTILITY BILLING
Leveraging technology to maximize recovery of utility costs By Peter Altobelli, vice president and general manager, Canadian Operations, Yardi
As recently as 10 years ago, hard-wired buildings and DOS-dependent computers represented multifamily property utility billing technology’s state of the art. Data collection was slow, client reporting was insufficient, and proprietary utility billing software made it difficult for clients to change their billing service provider.
payments and cheque processing, invoice processing, supply and services procurement—and now utility billing and utility management, as property managers facing increasing cash flow and bottom-line pressures seek new ways to maximize recovery of their utility costs.
Over the subsequent decade, utility usage data gathering and transmission became faster and more reliable, as hard-wiring gave way to wireless technology. Wireless enabled utility billing service providers to provide much more reliable service; ironically, the elimination of proprietary software made it easier for multifamily companies to switch utility billing providers. But the technology evolution wasn’t complete; billing service companies still had to create utility tracking files and send them to their clients, who filled in the resident information and returned them. This involved time-consuming manual processing of invoices, cost allocation calculations, and resident billing.
Centralization grows NOI A number of multifamily managers are adopting integrated utility management solutions that automate the utility billing process. Automated utility billing processes encompass all elements of utility billing management—invoice processing, meter reading, consumption analysis, submetering, online payments, and vacant unit cost recovery. System integration and automation can improve cost recovery, thereby increasing net operating income and property value, with accurate calculations of utility consumption and direct billings to residents. By integrating utility usage information with existing resident, unit, occupancy, and square footage information in a central property management database, multifamily property managers can increase control over their utility billing cycle and collection success rate.
Today, with utility rates steadily increasing, multifamily property managers want to maximize efficiency and minimize technology vendors, software, and IT costs. Many are considering the benefits that might be gained from full-business solutions that consolidate multiple business functions, including utility billing and utility management, into a core property management and accounting platform, without any third-party interfaces. In recent years the multifamily industry’s march toward complete, single-platform integration has encompassed processes such as rent
Integrated utility billing services and technologies combine automation, paperless processing, and resident self-service technology. The payables reside in the property manager’s centralized accounting system, along with scanned images of the invoices. They can be auto-approved and ready for immediate payment to the utility
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[ Technology ]
companies, helping property managers avoid utility shutoffs or fees for late payments. Submetering converged with resident billing An integrated billing system measures consumption daily by submetering. The system then auto-calculates resident utility charges and individual resident utility charges. Convergent bills, key to ensuring timely utility payment, are auto-generated and sent electronically or by mail, or are made available via a portal, which also gives residents the ability to monitor daily consumption and obtain projections of their cost for the month. Residents’ payments are collected and processed either online through the resident portal or by cheque. All measurements, allocations, calculations and processing are performed directly in the central database, so no data transfer is required. Convergent billing payments are processed once, eliminating thirdparty processing, reducing overhead costs, and maximizing cash flow with faster payments. Paperless invoice processing and payments also promote sustainability initiatives while reducing paper handling and postage costs. With an integrated solution, site managers can spend more time on their core leasing and property management functions rather than on collecting utility payments. Automated calculation of move-out charges that ensures final payments from departing residents represents another key advantage. Early warning of problems By leveraging integrated utility data with resident data in the property management system, the resulting automation provides early warning for such potentially costly abnormalities as spikes in usage, leaks, or broken meters. The system captures anomalous data and sends automated e-mail notifications to property managers. Such integration also makes utility usage trends accessible to property managers by generating utility consumption graphs. This information is instantly available at the manager’s fingertips, with no interfaces needed because resident and utility system data are in one place rather than on multiple platforms.
Other potential features of utility billing systems are 24/7 call centres from which residents can obtain assistance on utility questions or problems by phone or e-mail. Convergent billing isn’t new to the multifamily marketplace; its widespread adoption is still developing. However, integration into one platform of property operations, accounting,
and utility management is much newer. As technology that drives utility billing and management becomes more sophisticated and versatile, residential property managers may wish to consider the potential benefits available from utilizing billing services that completely integrate with their property management systems. RHB
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